Meyer on the Economy
SLOWDOWN: Meyer says economic growth will slow in coming quarters to less than 2%, or below the pace of last summer. Even though the housing, furniture, and auto sectors have been strong, he thinks that big-ticket purchases will decline.
NO RECESSION: The odds of recession are very low. Recessions are caused by shocks to an economy, and while Meyer thinks the stock market may soon drop, he doesn't think a correction would be enough to trigger a broader economic downturn.
NO RATE CUTS: Meyer hints that even if the economy slows, the Fed is unlikely to ease interest rates as long as labor markets are tight. He also thinks inflation could tick up next year.
DATA: BUSINESS WEEK
Updated June 14, 1997 by bwwebmaster
Copyright 1996, Bloomberg L.P.